KINDERHOOK, N.Y. – August 13, 2014 – American Bio Medica Corporation (ABMC) today announced financial results for the three and six months ended June 30, 2014.

Net sales for the second quarter of 2014 were $1,811,000 compared to $2,380,000, in the second quarter of 2013, representing a decrease of $569,000, or 23.9%. For the six months ended June 30, 2014, net sales were $3,854,000 compared to $4,505,000 for the six months ended June 30, 2013, representing a decrease of $651,000, or 14.5%.

The Company reported operating income of $23,000 in the second quarter of 2014, compared to an operating loss of $(211,000) in the second quarter of 2013. Net loss for the second quarter of 2014 was $(41,000), or $(0.00) per share, compared to a net loss of $(294,000), or $(0.01) per share in the second quarter of 2013. Operating income for the first six months of 2014 was $85,000, compared to an operating loss of $(573,000) in the first six months of 2013. Net loss for the first half of 2014 was $(32,000), or $(0.00) per share, compared to a net loss of $(718,000), or $(0.03) per share in the first half of 2013.

ABMC Chief Executive Officer Melissa A. Waterhouse stated, “We continue to see year over year improvement in our financial condition as a result of our diligence in keeping expenses in line with sales. However, from a sales perspective, the second quarter was disappointing. In addition to the loss of workplace oral fluid sales in the second quarter, we experienced a decline in government sales in the second quarter 2014 (when sales had been increasing over the past several quarters). Some states are being fiscally conservative and decreasing their drug testing budgets, and price competition from foreign manufacturers is ever present in the government market. With some accounts, order timing may be the issue. Presently, we are unsure if this new trend will continue into future quarters. Expansion of our product line is critical to jump start sales growth; to that end, we are still on track to bring another urine-based drug test to market in 2014 (for the clinical and pain management markets as well as government markets). After that, we intend to begin development on new assays for market introduction in 2015.”

Waterhouse continued, “In the second quarter of 2014, we refinanced our mortgage on our Kinderhook facility enabling us to slightly decrease our interest costs and reclassify a portion of the mortgage back to a long-term liability. High interest rates on other debt continue to negatively impact our financial condition, so we are continuing our efforts to further restructure debt.”

For more information on ABMC or its drug testing products, please visit

About American Bio Medica Corporation

American Bio Medica Corporation develops, manufactures and markets accurate, cost-effective immunoassay test kits, primarily point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC’s Rapid Drug Screen®, Rapid ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ test for the presence or absence of drugs of abuse in oral fluids. ABMC’s Rapid Reader® is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.

This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, intellectual property rights, our dependence on key personnel, third party sales and suppliers, trading in our common shares may be subject to “penny stock” rules, our history of recurring net losses and our ability to continue as a going concern. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled “Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2013, quarterly reports on Form 10-Q, and other periodic reports on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company’s common shares.

Condensed Statements of Operations
For the threeFor the threeFor the sixFor the six
months endedmonths endedmonths endedmonths ended
June 30, 2014June 30, 2013June 30, 2014June 30, 2013
Net sales$1,811,000$2,380,000$3,854,000$4,505,000
Cost of goods sold1,020,0001,411,0002,186,0002,750,000
Gross profit791,000969,0001,668,0001,755,000
Operating expenses:
Research and development45,000115,00091,000178,000
Selling and marketing267,000491,000559,000966,000
General and administrative456,000574,000933,0001,184,000
Total operating expenses768,0001,180,0001,583,0002,328,000
Operating income / (loss)23,000(211,000)85,000(573,000)
Other expense(64,000)(82,000)(116,000)(143,000)
Net loss before tax(41,000)(293,000)(31,000)(716,000)
Income tax expense0(1,000)(1,000)(2,000)
Net loss$(41,000)$(294,000)$(32,000)$(718,000)
Basic & diluted loss per common share









Weighted average shares outstanding – basic and diluted





(Condensed Balance Sheets follow)

American Bio Medica Corporation
Condensed Balance Sheets
June 30,December 31,


Current Assets

Cash and cash equivalents


Accounts receivable, net of allowance for doubtful accounts of
$43,000 at June 30, 2014 and $58,000 at December 31, 2013



Inventory, net of allowance of $413,000 at June 30, 2014 and
$399,000 at December 31, 2013



Current portion of deferred financing56,00051,000
Prepaid expenses and other current assets95,00096,000
Total current assets3,269,0003,739,000
Property, plant and equipment, net1,040,0001,090,000
Deferred finance costs20,00080,000
Other assets14,00014,000
Total assets$4,390,000$4,966,000
Current liabilities
Accounts payable462,000$597,000
Accrued expenses and other current liabilities224,000314,000
Wages payable250,000233,000
Line of credit, net769,000987,000
Current portion of long-term debt, net886,0001,226,000
Total current liabilities2,591,0003,357,000
Other liabilities68,000147,000
Related party note124,000124,000
Long-term debt257,0000
Total liabilities3,040,0003,628,000
Stockholders’ Equity:
Common stock232,000229,000
Additional paid-in capital20,282,00020,241,000
Accumulated deficit(19,164,000)(19,132,000)
Total stockholders’ equity1,350,0001,338,000
Total liabilities and stockholders’ equity$4,390,000$4,966,000
American Bio Medica Corporation
Melissa A. Waterhouse, (800) 227-1243, Ext 107
Chief Executive Officer